The Bureau of Internal Revenue (BIR) may implement a major reorganization starting March as part of the government’s implementation of the Lateral Attrition Act of 2005, the measure that allows for the transfer in post or separation from government service of BIR and Customs officials who fail to perform their duties.
BIR deputy commissioner for operations Nelson Aspe said that the reshuffle of officers may take place after the end of February.
“We will wait for the final figures for 2007. This will be towards the end of February,” Aspe said.
He said that officials up to the director levels are covered by the law but not the deputy commissioners and the commissioner.
However, he stressed that with our without the law, “we serve at the pleasure of the appointing powers.”
Aspe said that those who fail to meet their targets may be transferred to jobs with lesser responsibilities.
BIR and BOC officials who fail to meet their targets by at least seven percent shall be covered by the attrition law.
At the same time, the measure also allows for special incentives to motivate officials to render exemplary service while upholding the highest ethical standards.
Finance Undersecretary Gaudencio Mendoza Jr. has said the top officials of the BIR and the Bureau of Customs are covered by the lateral attrition measure which the Finance department would be strictly implementing.
The BIR and the BOC have not been meeting their respective revenue targets due to rampant smuggling and wide-spread corruption in the two offices.
The BIR, the government’s main tax agency, recorded a nine percent year-on-year growth in revenues to P647 billion from January to November last year from P594.1 billion recorded a year ago.
The BOC, meanwhile, collected P192.1 billion during the 11-month period, against the P181 billion recorded a year earlier.
The BIR has a collection goal of P765 billion for 2007 while the BOC has a collection goal of P254 billion.
The two agencies are hard-pressed to meet their respective collection targets to allow the government to contain the budget deficit at P63 billion last year and to balance this by the end of the year.